UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

(Mark one)

|X|      QUARTERLY  REPORT  PURSUANT  TO SECTION  13 OR 15(d) OF THE  SECURITIES
         EXCHANGE ACT OF 1934

         For the quarterly period ended September 30, 1999

                                       OR

/ /      TRANSITION  REPORT  PURSUANT  TO SECTION 13 OR 15(d) OF THE  SECURITIES
         EXCHANGE ACT OF 1934

         For the transition period from ________to________

                           Commission File No. 0-21324

                                   NYFIX, INC.
             (Exact name of registrant as specified in its charter)

                NEW YORK                           06-1344888
         (State of incorporation)        (I.R.S. Employer identification number)

    333 LUDLOW STREET, STAMFORD, CONNECTICUT           06902
        (Address of principal executive offices)    (Zip Code)

       Registrant's telephone number, including area code: (203) 425-8000


            Indicate  by check mark  whether  the  registrant  (1) has filed all
reports  required to be filed by Section 13 or 15(d) of the Securities  Exchange
Act of 1934 during the preceding 12 months (or for such shorter  period that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. Yes /X/ No / /


10,511,351 shares of Common Stock were issued and outstanding as of November 11,
1999.

<PAGE>

NYFIX, INC. (Formerly Trinitech Systems, Inc.)

FORM 10-Q
   For the quarterly period ended September 30, 1999


CONTENTS                                                                    PAGE

PART I.     FINANCIAL INFORMATION

   Item 1.  Financial Statements

            Condensed consolidated balance sheets as of September 30, 1999
            (unaudited) and December 31, 1998                                 3

            Condensed consolidated statements of operations (unaudited)
            for the Three Month and Nine Month periods ended September 30,
            1999 and 1998                                                     4

            Condensed consolidated statements of cash flows (unaudited)
            for the Nine Month periods ended September 30, 1999 and 1998      5

            Notes to condensed consolidated financial statements (unaudited)  6

Item 2.     Management's Discussion and Analysis of Financial
            Condition and Results of Operations                              11

PART II.    OTHER INFORMATION                                                17





                                       2
<PAGE>

          NYFIX, INC. AND SUBSIDIARY (Formerly Trinitech Systems, Inc.)
                      CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>

                                                                                  September 30,    December 31,
ASSETS                                                                                1999             1998
                                                                                      ----             ----
                                                                                   (Unaudited)         (a)
CURRENT ASSETS:
<S>                                                                               <C>              <C>
    Cash and cash equivalents                                                     $  3,583,505     $  3,948,004
    Accounts receivable - less allowance of $150,952 and $92,986, respectively       6,753,346        3,417,418
    Inventories, net                                                                 1,186,481        1,279,302
    Due from joint venture                                                             363,970             --
    Prepaid expenses and other current assets                                          535,950          283,912
    Receivable from officers                                                           135,902          120,583
                                                                                  ------------     ------------
                      Total Current Assets                                          12,559,154        9,049,219

EQUIPMENT, net of accumulated depreciation of $2,254,042 and
   $1,453,882, respectively
                                                                                     5,192,802        2,854,131

OTHER ASSETS, net of accumulated amortization of $2,045,469 and
   $1,538,504, respectively                                                          1,784,646        1,094,169
                                                                                  ------------     ------------

                      TOTAL                                                       $ 19,536,602     $ 12,997,519
                                                                                  ============     ============

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
    Accounts payable                                                              $  1,542,290     $    873,817
    Accrued expenses                                                                   928,457          635,943
    Advanced Billings                                                                2,813,569        1,489,057
    Payroll and other taxes payable                                                    195,973           79,953
    Credit Line Payable - Short term                                                   250,000             --
                                                                                  ------------     ------------

                      Total Current Liabilities                                      5,730,289        3,078,770

CREDIT LINE PAYABLE - LONG TERM                                                      2,250,000        1,800,000
                                                                                  ------------     ------------

                      Total Liabilities                                              7,980,289        4,878,770
                                                                                  ------------     ------------

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY:
  10% Convertible preferred stock - par value $1.00; 1,000,000 shares
    authorized; -0- issued and outstanding

  Common stock - par value $.001; 15,000,000 authorized; 9,636,351 and
    9,408,530 shares issued and outstanding, respectively                                9,636            9,409
    Warrants                                                                           169,572          125,513
    Additional paid-in capital                                                      17,713,864       14,767,116
    Accumulated deficit                                                             (5,782,354)      (6,330,364)
    Due from officers and directors                                                   (554,405)        (452,925)
                                                                                  ------------     ------------

                      Total Stockholders' Equity                                    11,556,313        8,118,749
                                                                                  ------------     ------------

                      TOTAL                                                       $ 19,536,602     $ 12,997,519
                                                                                  ============     ============
</TABLE>

(a) The balance  sheet at December  31, 1998 has been  derived  from the audited
financial statements at that date.

The accompanying notes to the condensed consolidated financial statements are an
integral part of these statements.


                                       3
<PAGE>

          NYFIX, INC. AND SUBSIDIARY (Formerly Trinitech Systems, Inc.)

           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

<TABLE>
<CAPTION>

                                                        Three Month         Three Month        Nine Month       Nine Month
                                                        Period Ended        Period Ended      Period Ended     Period Ended
                                                        September 30,       September 30,     September 30,    September 30,
                                                              1999             1998              1999             1998
                                                              ----             ----              ----             ----
REVENUES:
<S>                                                      <C>              <C>              <C>              <C>
Sales                                                    $    709,878     $    528,998     $  2,584,384     $  1,666,456
Subscription Revenue                                        1,839,024          589,258        4,565,074        1,424,748
Service Contracts                                             447,687          325,038        1,293,859          953,913
                                                         ------------     ------------     ------------     ------------
      Total Revenues                                        2,996,589        1,443,294        8,443,317        4,045,117

COST OF RECURRING CONTRACTS and SALES                         902,610          653,361        2,542,450        1,721,011
                                                         ------------     ------------     ------------     ------------
GROSS PROFIT                                                2,093,979          789,933        5,900,867        2,324,106
                                                         ------------     ------------     ------------     ------------
EXPENSES:
Selling, general and administrative                         1,543,162        1,237,543        4,839,879        4,193,569
Depreciation                                                  150,332          130,199          421,342          298,831
Amortization                                                    5,060            4,596           14,765           13,786
                                                         ------------     ------------     ------------     ------------
      Total Expenses                                        1,698,554        1,372,338        5,275,986        4,506,186
                                                         ------------     ------------     ------------     ------------
EARNINGS (LOSS) FROM OPERATIONS                               395,425         (582,405)         624,881       (2,182,080)

OTHER (EXPENSE) INCOME - NET                                  (11,196)           6,865          (49,835)          84,760
                                                         ------------     ------------     ------------     ------------

NET EARNINGS (LOSS) BEFORE PROVISION FOR INCOME TAXES         384,229         (575,540)         575,046       (2,097,320)

PROVISION FOR INCOME TAXES                                     16,561            4,064           27,036            8,284
                                                         ------------     ------------     ------------     ------------
NET EARNINGS (LOSS)                                      $    367,668     $   (579,604)    $    548,010     $ (2,105,604)
                                                         ============     ============     ============     ============
BASIC EARNINGS (LOSS) PER COMMON SHARE                   $       0.04     $      (0.07)    $       0.06     $      (0.24)
                                                         ============     ============     ============     ============
BASIC WEIGHTED AVERAGE COMMON SHARES OUTSTANDING            9,469,637        8,771,530        9,455,138        8,682,780
                                                         ============     ============     ============     ============
DILUTED EARNINGS (LOSS) PER COMMON SHARE                 $       0.04     $      (0.07)    $       0.05     $      (0.24)
                                                         ============     ============     ============     ============
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING         10,236,718        8,771,530       10,020,345        8,682,780
                                                         ============     ============     ============     ============
</TABLE>

The accompanying notes to the condensed consolidated financial statements are an
integral part of these statements.


                                       4

<PAGE>
         NYFIX, INC. AND SUBSIDIARY (Formerly Trinitech Systems, Inc.)


           CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

<TABLE>
<CAPTION>

                                                                   Nine Month        Nine Month
                                                                  Period Ended      Period Ended

                                                                  September 30,     September 30,
                                                                      1999              1998
                                                                      ----              ----

<S>                                                                <C>             <C>
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES                $   426,277     $(1,081,812)
                                                                   -----------     -----------
INVESTING ACTIVITIES:
    Payments for equipment, net of retirements                      (3,138,830)     (1,377,419)
    Payments for other assets                                       (1,197,441)       (576,105)
                                                                   -----------     -----------

                      Net cash used in investing activities         (4,336,271)     (1,953,524)
                                                                   -----------     -----------

FINANCING ACTIVITIES:
    Proceeds from line of credit                                       700,000       2,000,000
    Issuance of common stock                                         2,845,495         890,313
    Repayment of borrowings                                               --          (593,564)
                                                                   -----------     -----------

                      Net cash provided by financing activities      3,545,495       2,296,749
                                                                   -----------     -----------
DECREASE IN CASH AND CASH EQUIVALENTS                                 (364,499)       (738,587)


CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                       3,948,004       2,141,307
                                                                   -----------     -----------

CASH AND CASH EQUIVALENTS, END OF PERIOD                           $ 3,583,505     $ 1,402,720
                                                                   ===========     ===========
</TABLE>


The accompanying notes to the condensed consolidated financial statements are an
integral part of these statements.


                                       5
<PAGE>
NYFIX, INC. (Formerly Trinitech Systems, Inc.)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)



1.       ORGANIZATION

         On October 21, 1999,  shareholders of Trinitech Systems,  Inc. approved
         the Board of  Directors  decision  to change the name of the company to
         NYFIX, Inc. ("NYFIX" or the "Company"),  effective October 25, 1999. In
         conjunction  with the name change the Company changed its ticker symbol
         on the American Stock Exchange to "NYF".


2.       BASIS OF PRESENTATION

         The accompanying  unaudited condensed consolidated financial statements
         have been prepared in accordance  with  generally  accepted  accounting
         principles for interim financial  information and with the instructions
         to Form 10-Q.  In the opinion of  management,  all  adjustments,  which
         comprise normal and recurring accruals considered  necessary for a fair
         presentation,  have been included.  Operating results for the three and
         nine-month   period  ended  September  30,  1999  are  not  necessarily
         indicative  of the  results  that may be  expected  for the year ending
         December 31, 1999. For further  information,  refer to the consolidated
         financial  statements and footnotes  thereto  included in the Company's
         annual report on Form 10-KSB for the year ended December 31, 1998.

         Certain 1998  balances  have been  reclassified  to conform to the 1999
         presentation.


3.       PER SHARE INFORMATION

         The Company's basic EPS is calculated  based on net earnings  available
         to  common  shareholders  and the  weighted-average  number  of  shares
         outstanding during the reported period. Diluted EPS includes additional
         dilution from common stock equivalents, such as stock issuable pursuant
         to the exercise of stock options and stock warrants.


                                       6
<PAGE>

<TABLE>
<CAPTION>
                                                        Three Month                   Nine Month
                                                        Period Ended                  Period Ended
                                               ------------------------------   -------------------------
                                                September        September      September       September
                                                30, 1999         30, 1998       30, 1999        30, 1998
                                                --------         ---------      ---------       ---------

<S>                                             <C>            <C>             <C>            <C>
Net Earnings (Loss)                             $   367,668    $  (579,604)    $   548,010    $(2,105,604)
                                                ===========    ===========     ===========    ===========

Basic Weighted Average Shares Outstanding         9,469,637      8,771,530       9,455,138      8,682,780
                                                -----------    -----------     -----------    -----------

Basic Earnings (Loss) per Common Share          $      0.04    $     (0.07)    $      0.06    $     (0.24)
                                                -----------    -----------     -----------    -----------

     Dilutive Options                               647,595           --           471,762           --
     Dilutive Warrants                              119,486           --            93,446           --
                                                -----------    -----------     -----------    -----------

Dilutive Weighted Average Shares Outstanding     10,236,718      8,771,530      10,020,345      8,682,780
                                                ===========    ===========     ===========    ===========

Dilutive Earnings (Loss) per Common Share       $      0.04    $     (0.07)    $      0.05    $     (0.24)
                                                ===========    ===========     ===========    ===========
</TABLE>

         Stock  options and warrants  were  excluded from the earnings per share
         calculation  for the three and nine month periods  ended  September 30,
         1998 since the amounts would be anti-dilutive.


4.       INCOME TAXES

         The Company's  projected  annual  Federal income tax provision has been
         offset through the  utilization  of net operating loss  carry-forwards.
         The  Company's  income tax  provision  consists of estimated  state and
         local income taxes.


5.       INVENTORIES

         Inventories  are stated at the lower of cost  (first-in,  first-out) or
         market. Inventories consisted of the following:

                                                September 30,    December 31,
                                                  1999               1998
                                                  ----               ----

         Parts                                  $773,491           $823,429
         Finished goods                          494,990            537,873
         Less: allowance for obsolescence         82,000             82,000
                                              ----------         ----------
                                       Total  $1,186,481         $1,279,302
                                              ==========         ==========



                                       7
<PAGE>

6.       IMPACT OF RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

         In June 1998, the Financial Accounting Standards Board issued Statement
         of Financial  Accounting  Standards  ("SFAS") No. 133,  "Accounting for
         Derivative   Instruments  and  Hedging   Activities."   This  statement
         establishes  standards for the  accounting and reporting for derivative
         instruments and for hedging  activities and requires the recognition of
         all derivatives as assets or liabilities  measured at their fair value.
         Gains or losses resulting from changes in the fair value of derivatives
         would be recognized in earnings in the period of change unless  certain
         hedging  criteria are met. The Company does not expect the Statement to
         have a material impact on the consolidated  financial statements.  SFAS
         No.  133, as amended by SFAS No. 137,  is  effective  for fiscal  years
         beginning after June 15, 2000.


7.       BUSINESS SEGMENT INFORMATION

         The Company has two principal  business groups:  Equities and Futures &
         Options. The Equities Group operates primarily out of Stamford/New York
         offices, while the Futures & Options Group operate primarily out of the
         London and Chicago offices. However, each office has the opportunity to
         sell all of the  Company's  products.  The Company views each office as
         its own  business  segment and measures  its  performance  based on the
         revenues of each location.  The Company makes decisions on each segment
         based on gross profit.

         Information on reportable segments is as follows (in 000's):

                                    Three Month             Nine Month
                                    Period Ended           Period Ended
                             -----------------------------------------------
                              September    September   September   September
                               30, 1999     30, 1998    30, 1999    30, 1998
                               --------    ----------  ----------  ---------
         Revenues:
  Stamford/New York            $ 2,039     $ 1,042     $ 6,145     $ 2,522
  London                           807         400       2,105       1,498
  Chicago                          151           1         193          25
  Inter-Segment Sales               38           6          59          47
  Inter-Segment Elimination        (38)         (6)        (59)        (47)
                               -------     -------     -------     -------
Total Revenues                 $ 2,997     $ 1,443     $ 8,443     $ 4,045
                               =======     =======     =======     =======

Gross Profit:
  Stamford/New York            $ 1,264     $   465     $ 3,882     $   955
  London                           691         325       1,844       1,352
  Chicago                          139        --           175          17
                               -------     -------     -------     -------
Gross Profit                   $ 2,094     $   790     $ 5,901     $ 2,324
                               =======     =======     =======     =======


                                       8
<PAGE>
8        CAPITAL STOCK

         On  September  7, 1999,  the Company  completed a private  placement of
         125,000 shares of Common Stock to an institutional investment firm at a
         price of $20.375 per share for an aggregate value of $2,546,875.

         On  October  21,  1999,   shareholders  approved  an  increase  in  the
         authorized  shares of the Company's Common and Preferred Stock.  Common
         shares will increase from 15 million to 60 million shares and Preferred
         shares from 1 million to 5 million  shares.  Along with this  increase,
         the Board of Directors  authorized a 3 for 2 stock split in the form of
         a 50% stock dividend to all shareholders of record on November 1, 1999,
         payable November 15, 1999.

         The following tables show the proforma effect of the stock split on the
         earnings  per share for the three  month and nine month  periods  ended
         September 30, 1999 and 1998:
<TABLE>
<CAPTION>

                                                        Three Month                       Nine Month
                                                        Period Ended                      Period Ended
                                               -------------------------------  ------------------------------
                                                September         September      September       September
                                                30, 1999          30, 1998       30, 1999        30, 1998
                                               -------------------------------  ---------------  -------------

<S>                                             <C>             <C>              <C>             <C>
Net Earnings (Loss)                             $    367,668    $   (579,604)    $    548,010    $ (2,105,604)
                                                ============    ============     ============    ============

Basic Weighted Average Shares Outstanding         14,204,456      13,157,295       14,182,707      13,024,170
                                                ------------    ------------     ------------    ------------

Basic Earnings (Loss) per Common Share          $       0.03    $      (0.04)    $       0.04    $      (0.16)
                                                ------------    ------------     ------------    ------------

     Dilutive Options                                971,393            --            707,643            --
     Dilutive Warrants                               179,229            --            140,169            --
                                                ------------    ------------     ------------    ------------

Dilutive Weighted Average Shares Outstanding      15,355,078      13,157,295       15,030,519      13,024,170
                                                ============    ============     ============    ============

Dilutive Earnings (Loss) per Common Share       $       0.02    $      (0.04)    $       0.04    $      (0.16)
                                                ============    ============     ============    ============
</TABLE>

         Stock  options and warrants  were  excluded from the earnings per share
         calculation  for the three and nine month periods  ended  September 30,
         1998 since the amounts would be anti-dilutive.

9        STOCK OPTION PLAN

         On March 30, 1999, the Board of Directors  formally approved the second
         amendment to the Amended and Restated 1991  Incentive and  Nonqualified
         Stock Option Plan. Under this amendment, the number of options reserved
         for  issuance has been  increased  from  1,500,000  shares to 2,500,000
         shares of common  stock.  This  amendment was approved at the Company's
         Annual Meeting of Shareholders held on June 7, 1999. In connection with
         the aforementioned stock split payable on November 15, 1999, the number
         of shares reserved for issuance will be increased to 3,750,000.


                                       9
<PAGE>
10.      JOINT VENTURE

         On October 27,  1999,  NYFIX,  Inc.  announced  the  formation of NYFIX
         Millennium,  L.L.C.  ("NYFIX  Millennium") with a consortium of leading
         international  banks and brokerage firms.  NYFIX Millennium  intends to
         operate as an  alternative  trading  system.  All of the members of the
         consortium,  including  NYFIX,  Inc. have invested  $2,000,000  each in
         NYFIX Millennium. Pursuant to the Operating Agreement, NYFIX Millennium
         profits will be allocated 80% to NYFIX and 20% to the  non-NYFIX,  Inc.
         partners.  The first  $14,000,000  in losses will be  allocated  to the
         seven  non-NYFIX,  Inc.  investors,  which  equals  the extent of their
         capital  investment  in NYFIX  Millennium.  NYFIX,  Inc.  has  incurred
         operating and capital costs on behalf of NYFIX  Millennium.  Such costs
         are reflected as Due from Joint Venture on the Company's balance sheet.





                                       10
<PAGE>
ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
         CONDITION AND RESULTS OF OPERATIONS

The following  discussion and analysis  should be read in  conjunction  with the
condensed  consolidated  financial  statements  and  notes  thereto.  Historical
results and  percentage  relationships  are not  necessarily  indicative  of the
operating results for any future period.

The Company  commenced its present  business  operations in January 1991 through
the acquisition of a software license for its  Guided-Input(R)  Touchpad system.
Since  that time,  the  Company  has  transitioned  from a hardware  vendor to a
software  development  company  focusing  exclusively  on  applications  for the
financial  marketplace.  The  Company  provides a complete  line of  workstation
products for the  financial  trading desk  environment  and its systems  provide
order  management and routing  software for firms engaged in financial  trading.
The Company currently offers its trading products  (integrated systems including
hardware and software)  together with linkage through its NYFIX data center. The
data center is a  communication  infrastructure  enabling the Company to provide
its customers with global  electronic  connectivity for order routing and allows
Trinitech to deploy and monitor its systems and services from a single location.
Customers  subscribe to various products,  paying a monthly fee per terminal for
the Company's  integrated software systems.  Most contracts provide the customer
with a basic system or  infrastructure,  via the Company's NYFIX data center and
are  entered  into by the  customer  with the  intention  to expand the level of
services   subscribed  to,  once  the  basic  system  and   infrastructure   are
operational.  Subscription  revenue  contracts  range  from  one to  three  year
periods. The Company begins recording  subscription revenue once installation is
complete.  In addition to significant  logistical  improvements  in delivery and
support of its products, the Company expanded its business to offer the industry
a central  electronic  meeting place between the buy-side and  sell-side,  while
simultaneously  providing  a  single  point of  universal  access  to  different
exchange floor environments.

Management  has made a  considerable  effort with respect to an expansion of its
operations,  development of various  trading systems and changes to its business
model to that of a  subscription-based  product  offering.  The Company believes
this    expansion   of   personnel,    facilities,    product    portfolio   and
subscription-based  model will  continue  to benefit  the Company and its future
growth.  In the previous model,  the Company would only receive revenue one time
for products or services  sold. It is important to note that this  transition is
causing  revenue to be recognized over a longer period of time than the previous
capital sales model.  Management  believes our  subscription  business model has
strengthened the Company's market share as well as its financial  position going
forward.

On October 27, 1999, the Company announced the formation of NYFIX Millennium LLC
("NYFIX  Millennium")  with a  consortium  of  leading  international  banks and
brokerage firms. NYFIX Millennium is registering as a Broker/Dealer and plans to
operate in compliance with  Regulation  ATS. NYFIX  Millennium is an "Integrated
ATS,  Exchange Access and Intelligent  `Best  Execution'  Order-Routing  System"
designed  to  provide  the  financial  community  with  "Best-Execution."  NYFIX
Millennium is built upon NYFIX's  proprietary  "Super FIX Engine" technology and
existing  NYFIX  network  infrastructure.  NYFIX  Millennium  is a Hybrid Market
System   leveraging  new  regulation  and  technology  with  the  power  of  the
traditional markets.

                                       11
<PAGE>

REVENUES

Overall  revenue for the three months ended  September 30, 1999 exceeded 1998 by
108% from $1,443,000 to $2,997,000.  Sales increased 34%,  subscription  revenue
increased 212% and service revenue  increased 38% over the comparable  period in
1998.  Revenue for the nine months ended  September 30, 1999  increased by 109%,
from $4,045,000 to $8,443,000 from the same period in 1998. Sales increased 55%,
subscription revenue increased 220% and service revenue increased 36%.

The increase in sales was primarily due to strong demand for the Company's Order
Book  Management  System  ("OBMS")  Futures & Options  Product.  The increase in
service revenue is principally a result of the increase in subscription revenue.
The increase in  subscription  revenue is due in part to the  increased  signups
from the fourth  quarter of 1998  through the first half of 1999.  In the second
half of 1998 the Company announced record signings of subscription customers.

Revenue  from  export  sales  approximated  $8,000 and  $30,000  (.3% and .4% of
revenue)  during the three and nine month  periods  ended  September  30,  1999,
respectively  as compared to  approximately  $8,000 and  $226,000  (1% and 6% of
revenue) during the comparable periods in 1998, respectively.

COST OF SALES AND SERVICE AND GROSS PROFIT
The Company's cost of recurring contracts and sales are principally comprised of
labor, materials,  overhead,  subscription  communication lines, amortization of
capitalized  product  enhancement  costs and depreciation of  subscription-based
equipment.  Gross profit, as a percentage of total revenue was approximately 70%
for  the  three  month  and  nine  month  period  ended   September   30,  1999,
respectively,  as  compared  to 55% and 57% for the same time  periods  in 1998,
respectively. The increase in gross profit percentage experienced by the Company
during the three and nine months ended September 30, 1999  principally  resulted
from increased  software sales which have higher margins than hardware sales and
improvement in the Company's pricing structure for subscription revenue which is
reflected in the  increased  subscription  revenue  year over year.  The Company
obtains its  materials  and supplies from a variety of vendors in the US and Far
East. During the three and nine months ended September 30, 1999, the Company did
not experience any significant price increases in its component parts purchased.
Included in cost of sales is amortization  expense for product enhancement costs
of  approximately  $193,000 and  $492,000  for the three and nine month  periods
ended September 30, 1999 respectively,  as compared to $124,000 and $330,000 for
the  same  periods  in 1998,  respectively.  Also  included  in cost of sales is
depreciation expense for subscription based equipment of approximately  $149,000
and  $379,000  for the three and nine month  periods  ended  September  30, 1999
respectively,  as compared to $88,000 and $205,000 for the same periods in 1998,
respectively.

SELLING, GENERAL AND ADMINISTRATIVE
Selling,  general  and  administrative  expenses  for the three  and nine  month
periods ended September 30, 1999 were approximately $1,543,000 and $4,840,000 as
compared to  $1,238,000  and  $4,194,000 in the  comparable  periods in 1998, an
increase of 25% and 15%, respectively.  Part of the increase in expenses for the
Company is from continuing  expansion of the development  teams both in the U.S.
and in London.  The expansion in  development  efforts  relates to the Company's
plans of providing an increased  number of product  enhancements  as well as new
additional services.  As a result, the Company experienced increases in salaries
and related  personnel costs,  travel expenses and various office expenses.  The
Company's   recruitment   effort   continues   to   strengthen   the   Company's
infrastructure  and  position  the Company to respond to  increasing  market and
revenue opportunities.  In addition, during June 1999, the Company

                                       12
<PAGE>
relocated its London office,  which resulted in higher office  occupancy  costs.
Management  believes that the continued  investment in  development of the NYFIX
data center,  and its  services,  are  designed to better  leverage the existing
products together with providing  additional sources of revenue. The Company has
continued its marketing programs in 1999 primarily focusing on representation at
technology  exhibitions planned throughout the year but did experience some cost
savings  as a result of a  decrease  in print  media  advertising  during  1999.
Research  and  development  (new  explorative  research)  expenses for the three
months and nine months ended September 30, 1999 were  approximately  $75,000 and
$219,000,  respectively, as compared to $147,000 and $490,000 for the comparable
periods in 1998 (a decrease of 49% and 55%,  respectively)  and are  included in
selling,  general and  administrative  expenses.  The decrease resulted from the
continuation  of the Company's  strategy,  incorporated  during 1998, to balance
resources  between  research and  development  and product  enhancements,  which
strengthens our existing product lines.

DEPRECIATION
Depreciation  expense for the three and nine month periods  ended  September 30,
1999 was  approximately  $150,000  and  $421,000 as  compared  to  $130,000  and
$299,000  in the  comparable  periods  in  1998,  an  increase  of 15% and  41%,
respectively. Such increases principally reflect the continued investment in the
Company's  infrastructure  in its  state-of-the-art  NYFIX  data  center on Wall
Street.

OTHER (EXPENSE) INCOME
Financing and interest expense for the three and nine months ended September 30,
1999  approximated  $44,000 and  $143,000 as compared to $15,000 and $27,000 for
the  comparable  periods in 1998,  respectively.  The  increases  are  primarily
because of higher  balances  outstanding  on the Company's line of credit during
1999,  combined with an increase in interest rates during 1999 and the effect of
financing  expense on the warrants  issued in connection with the line of credit
(see Liquidity and Capital Resources below).

Other income  primarily  consists of interest income earned on cash balances and
notes  receivable.  Interest  income for the three and nine month  periods ended
September 30, 1999  approximated  $25,000 and $85,000 as compared to $19,000 and
$62,000  in the same  periods  in 1998.  The  increase  in  interest  income was
principally  because of higher  average cash balances  maintained by the Company
during the three and nine months ended  September 30, 1999 versus the comparable
period in 1998.

NET EARNINGS (LOSS)
Net earnings for the three months ended  September 30, 1999 was $367,668  ($0.04
per basic and diluted common share)  compared to a net loss of $579,604  ($(.07)
per basic and diluted  common  share) for the three months ended  September  30,
1998.  Net earnings for the nine months  ended  September  30, 1999 was $548,010
($0.06 per basic and $0.05 per diluted  common share)  compared to a net loss of
$2,105,604 ($(.24) per basic and diluted common share) for the nine months ended
September 30, 1998. The net earnings  principally resulted from the higher level
of revenues and margins,  stable product costs and minimal increases in Selling,
General and Administrative expenses.

                                       13
<PAGE>

Management  has made a  considerable  effort with respect to an expansion of its
operations,  development  of various  trading  systems  which  began in 1993 and
continues   into  1999  and  changes  to  its  business   model  to  that  of  a
subscription-based product offering. The Company believes that this expansion of
personnel,  facilities,  product  portfolio  and  subscription-based  model  has
positioned the Company to facilitate its future growth.

LIQUIDITY AND CAPITAL RESOURCES

The Company's  primary source of liquidity has been equity capital and drawdowns
from  its  line of  credit.  In  November  of 1998  NYFIX  raised  approximately
$3,450,000 and in September of 1999 raised approximately $2,547,000 from private
placements of its securities.  At September 30, 1999, cash balances decreased to
$3,583,505  from  $3,948,004  at December 31, 1998 as a result of the  Company's
working  capital  needs  and  continued  desire  to  strengthen  its  NYFIX  and
subscription infrastructure.

The Company at September 30, 1999 had total debt of $2,500,000, which represents
amounts drawn down from its line of credit.  See discussion  below. In addition,
at  September  30,  1999,  the Company had no material  commitments  for capital
expenditures or inventory purchases.

On July 13,  1998,  the Company  entered  into a three year  $3,000,000  line of
credit agreement (the "Agreement") with a financial institution with advances on
such  agreement  available  to the  Company  during  the  first 18  months.  The
Agreement  is  primarily  intended  to finance  existing  and  future  equipment
expenditures.  The  Agreement  bears  interest at either LIBOR plus 1.25% or the
Bank's Prime rate. The rate used is  management's  discretion.  The Company drew
down  an  aggregate  of  $1,800,000  under  the  agreement  during  1998  and an
additional  $700,000  during 1999. The Agreement  requires  monthly  payments of
interest only until January 30, 2000.  Principal  drawdowns  under the Agreement
can  not be  prepaid  in the  first  eighteen  months.  Repayment  of  principal
commences on July 30, 2000 with twelve monthly  installments of $83,333 with the
remaining balance due on July 30, 2001. A Company  shareholder and the Company's
president  personally  secure  the  debt.  In  consideration  for  securing  the
Agreement,  the said  shareholder  and  president  received  150,000  and 25,000
warrants  respectively,  to purchase  the  Company's  common stock at $6.375 per
share, which was the market value of the Company's common stock on the date such
warrants were issued. Expense related to the warrants issued to the non-employee
shareholder will be recognized over the three-year term of the Agreement.

In  association  with  obtaining the  $3,000,000  line of credit  facility,  the
Company  terminated its previous $500,000 line of credit agreement (revised from
$1,000,000  line  of  credit   agreement  in  September  1998)  and  repaid  all
outstanding term loans.

The  Company  believes  that  with its  available  capital,  the line of  credit
facility and anticipated funds generated from operations it will be able to fund
its cash needs through the end of 1999 without the need for  additional  capital
or financing.  The Company intends to utilize its projected  positive  financial
position  to  internally   finance  its  continuing   research  and  development
activities and anticipated sales growth.  The Company's  financial  requirements
and its  ability  to meet them  thereafter  will  depend  largely  on its future
financial performance.  However, in the event the Company's operations grow more
rapidly  than  anticipated  and do not  generate  cash to the  extent  currently
anticipated by management of the Company,  it
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<PAGE>

is possible that the Company could require additional funds beyond 1999. At this
time,  the Company does not know what sources,  if any, would be available to it
for such funds, if required.

In addition,  the Company has warrants  outstanding  for the purchase of 253,250
shares of its  Common  Stock.  Assuming  the  exercise  of all such  outstanding
Warrants, the Company would receive approximately $1,533,000 in gross proceeds.

WORKING CAPITAL
At September  30, 1999 and December 31, 1998 the Company had working  capital of
approximately  $6,829,000 and $5,970,000,  respectively.  The Company's  present
capital  resources  include  proceeds from its September  1999 and November 1998
private placement of Common Stock and drawdowns from its bank credit facility.

CASH PROVIDED BY / USED IN OPERATING ACTIVITIES
During the nine months ended September 30, 1999, net cash provided by operations
was  approximately  $426,000 as compared to net cash used in operations  for the
nine months ended September 30, 1998 of approximately $1,082,000.

CASH USED IN INVESTING ACTIVITIES
During the nine  months  ended  September  30,  1999 and 1998,  net cash used in
investing activities was approximately $4,336,000 and $1,954,000,  respectively,
and principally  represents  payments for the purchases of equipment  related to
the Company's  data center and  subscription  equipment and payments  related to
product enhancement costs for the Company's product portfolio.

PROCEEDS FROM FINANCING ACTIVITIES
During  the nine  months  ended  September  30,  1999 and  1998,  proceeds  from
financing activities were approximately $3,545,000 and $2,297,000, respectively.
The increase is primarily due to the $2,500,000  private  placement in September
of 1999.

YEAR 2000 COMPLIANCE

Overview. The Company is aware of industry wide issues related to Year 2000 that
are associated with the programming  code in computer  systems.  Systems that do
not properly  recognize the Year 2000 could  generate  erroneous data or cause a
system to fail.  The Company has developed a Year 2000 plan for our customers as
well as for our internal needs,  consisting of several phases which include risk
assessment,  manual and automated review of programming code,  baseline testing,
unit testing, integrated testing and a review of third party products.

Customers.  The Company  participated in industry wide Year 2000 testing between
March  through  April of 1999.  The  objective  of these tests was to ensure our
customer base is in full Year 2000 compliance before the end of the year. All of
these tests were  successful.  To date, the Company has already issued Year 2000
enhancements  to our  customers.  The Company  does not  envision  that  further
industry wide tests will reveal any significant software errors. However, should
there be unforeseen  problems,  the Company has  established a Year 2000 Quality
Assurance  Team that will stay in place  well into the Year  2000.


                                       15
<PAGE>

The  Company  estimates  that the most  likely  worst case  scenario  would be a
failure of  exchange  and  utility  systems  caused by an  unforeseen  Year 2000
complication.  Such a  condition  could  affect our  ability  and the ability of
brokerage  houses  and  other  service  providers  to  submit  order  executions
electronically.

NYFIX can not assure that third-party utilities and service providers will be in
a position  to address an  unforeseen  concern in a timely  basis.  Failure of a
third party to correct an issue  could  result in  significant  loss of revenue,
cause business disruption,  a loss of customers, and could materially affect our
financial condition.

Were this  contingency to arise,  our application  programs would  automatically
alert  our  customers  that  the  exchange  or  utility  has  not   successfully
acknowledged  their orders. All of the exchanges and utilities have a documented
process for reporting technical concerns and events.

However,  at the time of this report and after extensive  testing with exchanges
and utilities,  the Company has not identified any Year 2000 compliance  problem
relating to our systems  that would harm our  business  operations  or financial
condition.

It is possible  that a significant  amount of litigation  will arise out of Year
2000 compliance  issues. The Company has established a workable plan and Quality
Assurance team to help minimize these risks. Because of the unprecedented nature
of such litigation,  it is uncertain whether such issues may affect the Company.
Therefore,  there can be no  assurances  that the  Company  will not  experience
serious  unanticipated  negative  consequences  and/or  material costs caused by
undetected  errors or defects in the technology  used in the Company's  internal
systems or in third party systems that the Company employs.

Internal needs.  The Company has identified and evaluated all internal  software
and  hardware  systems for Year 2000  compliance.  Vendors of such  systems were
contacted to document  compliance  and at the time of this  filing,  report that
critical facilities and equipment will not be affected by Year 2000 concerns. In
addition, the Company formulated and published contingency procedures.

The  Company is also  evaluating  Year 2000  compliance  of third  parties  that
provide  services  to the  Company,  such as  banking  and  payroll  processing.
Non-information   technology  systems  will  also  be  subjected  to  evaluation
including  building  support systems  provided by the lessors of our offices and
our telecommunications systems.

The costs  incurred  to date have  principally  been the payroll  related  costs
associated with the time spent by our personnel in  identifying,  evaluating and
testing  systems and  products.  To date,  the Company  has not  identified  any
systems  that  would  require  significant  expenditures  to  become  Year  2000
compliant  nor is the  Company  aware of any  significant  costs  that  would be
incurred as a result of ensuring the internal needs are Year 2000 compliant.

SEASONALITY
The Company  believes  that its  operations  are not  significantly  effected by
seasonality.

                                       16
<PAGE>

NEW ACCOUNTING PRONOUNCEMENTS
In June 1998, the Financial Accounting Standards Board issued Statement No. 133,
"Accounting for Derivative  Instruments and Hedging  Activities." This statement
establishes   standards  for  the   accounting   and  reporting  for  derivative
instruments  and for hedging  activities  and  requires the  recognition  of all
derivatives  as assets or  liabilities  measured at their fair  value.  Gains or
losses  resulting  from  changes  in the  fair  value  of  derivatives  would be
recognized in earnings in the period of change unless certain  hedging  criteria
are met.  We do not  expect  the  Statement  to have a  material  impact  on our
consolidated financial statements.  SFAS No. 133, as amended by SFAS No. 137, is
effective for fiscal years beginning after September 15, 2000.

RISK FACTORS: FORWARD LOOKING STATEMENTS
This document contains certain forward-looking  statements within the meaning of
Section 27A of the  Securities  Act of 1933, as amended,  and Section 21E of the
Securities Exchange Act of 1934, as amended, which are intended to be covered by
the  safe  harbors   created   thereby.   Investors  are   cautioned   that  all
forward-looking  statements  involve risks and  uncertainty,  including  without
limitation,  the  ability of the  Company to market and  develop  its  products.
Although   the   Company   believes   that  the   assumptions   underlying   the
forward-looking   statements  contained  herein  are  reasonable,   any  of  the
assumptions could be inaccurate,  and therefore,  there can be no assurance that
the  forward-looking  statements  included  in this  document  will  prove to be
accurate.   In  light  of  the   significant   uncertainties   inherent  in  the
forward-looking  statements  included herein,  the inclusion of such information
should not be regarded as a  representation  by the Company or any other  person
that the objectives and plans of the Company will be achieved.


PART II

OTHER INFORMATION

     Item 6.      EXHIBITS AND REPORTS ON FORM 8-K.

           (a)    EXHIBITS

                  27    Financial    Data    Schedule,    which   is   submitted
                        electronically to the Securities and Exchange Commission
                        for information purposes only and not filed.

(b)         REPORTS ON FORM 8-K

                  None


                                       17
<PAGE>

                                   SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.




                                   NYFIX, INC.
                                            (Registrant)



                                   By: /s/ Richard A. Castillo
                                       ---------------------------
                                       Richard A. Castillo
                                       Chief Financial Officer and Secretary
                                       (Principal Financial and Accounting
                                       Officer)




                                       18